Analysis of macroeconomic factors affecting climate change performance

Climate change is regarded today not only as an environmental problem but also as a global challenge with economic, social, and political dimensions. Since the Industrial Revolution, rising greenhouse gas emissions have led to an increase in global temperatures and a disruption of ecosystem balances. This situation has made it more difficult for countries to achieve sustainable development goals and has raised questions about the effectiveness of environmental policies. In particular, developed economies play a critical role in combating climate change due to their high energy consumption and decisive position in global trade. In this context, the Climate Change Performance Index (CCPI) stands out as an important measure for evaluating countries' environmental performance based on indicators such as climate policies, greenhouse gas emissions, renewable energy use, and energy efficiency. CCPI is valuable not only in terms of environmental indicators but also as a tool for understanding how economic and financial dynamics are reflected in environmental policies. The main purpose of this study is to analyze the impact of countries' macroeconomic dynamics on climate change performance. The study focuses on the G7 countries, which were selected because of their advanced economic structures, strong financial markets, and leading roles in global climate policies. Using a panel dataset covering the period 2010–2021, the Climate Change Performance Index (CCPI) is employed as the dependent variable. The independent variables include Gross Domestic Product per capita (GDP, in logarithmic form), the Financial Development Index, the share of renewable energy R&D expenditures in total public R&D expenditures, and a dummy variable for the Paris Agreement. The findings of this study are expected to reveal which macroeconomic and institutional factors have a stronger influence on the climate change performance of G7 countries. In this way, the study aims to contribute to the development of practical strategies for policymakers to achieve sustainable development goals.